Come October 1, 2013 the new health insurance created through Obamacare will start enrolling millions of Americans. And it’s the responsibility of employers to inform their employees of this change of pace.
However, employers will not face a penalty or fine if they fail to inform their employees by October 1. This information, said by the administration, is that this new healthcare law will likely come as a relief to many small businesses, and so many employers should already be informing their employees.
Many reports said that quite a few small businesses were unaware of the requirement to inform employees and therefore found themselves at risk for penalties.
It is also a requirement for employers to inform employees that they may be able to get a lower-cost insurance on the exchanges, but if they buy insurance on the exchange they may lose their employer contribution.
This notice was posted on the Department of Labor’s website on Wednesday:
“If your company is covered by the Fair Labor Standards Act, it should provide a written notice to its employees about the Health Insurance Marketplace by October 1, 2013, but there is no fine or penalty under the law for failing to provide the notice,” the Labor Department said, under the heading “FAQ on Notice of Coverage Options.” Let us note that businesses that are covered by the Fair Labor Standards Act must have annual sales of at least $500,000.
The noticed was later confirmed by a FLSA spokesperson and let everyone know that the purpose of the posted notice was simply to provide clarifications for many business owners as to whether they would be penalized.
Penalization or not, be sure to inform your employees of the new healthcare laws and options. October 1 is right around the corner!